Nordea economists analyze the outlook for EUR/USD following their new forecasts for US rates.
EUR/USD practically sideways
Our new interest rate forecasts, in which the Fed will cut later and to a lesser extent than the ECB, favor a smaller weakening of the USD than we previously expected.
One could easily argue that the USD should strengthen against the Euro instead, and we wouldn't be surprised if that happened periodically. However, we continue to believe that lower global rates will continue to support economic activity and risk sentiment, reducing the appeal of the USD from a safe haven perspective.
Generally speaking, we see the EUR/USD range locked between the 1.0500-1.1000 area for the next year.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
